Debt of Telangana state crosses Rs 1 lakh Cr

The debt burden of the Telangana state has increased manifolds. According to the recent reports it has crossed the Rs 1 lakh-crore mark. At present, it stands at Rs 1,04,767 crore. It was recently claimed by the Telangana state Chief Minister K. Chandrasekhar Rao that the state's own tax revenues earnings have increased by 27 per cent during April-May 2016, over same period last year, it failed to match the rate at which the expenditure has increased. On the other hand the debt burden has resulted in government spending nearly Rs 800 crore towards payment of interest alone to various financial institutions. The subsidy burden has increased to Rs 30,000 crore due to populist schemes, even as the increased salary bill and mounting expenditure on irrigation projects is forcing the government to secure loans every month. According to credible sources the state government's own tax revenue earnings should be over Rs 6,000 crore per month to meet the current expenditure but it managed to reach only Rs 4,300 crore per month during the last four months.